Container Train Operators (CTOs) are sounding the alarm over substantial financial losses stemming from ongoing operational bottlenecks at Adani's Mundra Port, India's largest container gateway. The Association of Container Train Operators (ACTO) has highlighted severe container pendency and rail pipeline issues, which they claim are costing operators millions.
According to ACTO, loading for outward trains at Mundra Port is consistently 10-15% below the planned capacity, exacerbating congestion and driving up costs for CTOs. These expenses include higher ground rent charges and lost savings from reduced double-stack movement.
Mounting Costs and Operational Frustrations
Manish Puri, President of ACTO, has communicated these concerns directly to Sujal Shah, CEO of Adani Mundra Port. Puri stated that CTOs are bearing an average cost of approximately Rs 25,000 for every underframe wagon, estimating a daily cost of Rs 12.5 lakh, or nearly Rs 4 crore per month, in underframe expenses alone. This figure excludes additional ground rent charges passed on by shipping lines due to the port's inability to clear older containers.
ACTO attributes the current crisis to a significant build-up of pendency and train pipelines over recent weeks, following a challenging period impacted by geopolitical events in West Asia. Despite discussions, the port's team has reportedly offered only standard responses citing “operational issues” for not meeting planned loading targets.
A key frustration for operators is the port's failure to load containers on a “first in, first out” basis. In efforts to prioritize quick rake releases, older containers are often left behind, getting buried under fresh arrivals. This leads to containers attracting unnecessary ground rent, which is ultimately levied on CTOs.
ACTO Demands and Potential Actions
To mitigate the crisis, ACTO has put forward several recommendations to the Mundra Port authority:
- Ground Rent Relief: Provide relief on ground rent levies that result from pendency and are passed onto CTOs through no fault of their own.
- Underframe Operations: Address and resolve issues leading to underframe operations by instructing the port's maintenance team.
- Congestion Advisories: Issue suitable advisories indicating congestion and pendency to allow CTOs to inform end-user customers effectively.
Puri warned that a lack of positive response could force ACTO to consider “stronger action, including reserving our rights to withhold port dues that are resulting for no fault of our own.” The ongoing issues have left end-user customers uninformed and pressured CTOs to expedite clearances, further complicating the supply chain.